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It has been over a year since President Trump announced a sweeping suite of country-by-country tariffs on imported foreign goods. After many reversals, walk-backs, and changes of mind, some industries have emerged largely untouched by these unpredictable and, at times, erratic shifts in trade and foreign policy.
For industries that rely on steel, aluminium, or semiconductors—of which automotive is one—the story is different. Owing to Section 232, materials deemed critical to matters of national security are subject to Trump’s high and unwavering tariffs.
A year after “liberation day,” many OEMs are calling for a reappraisal of Trump’s stringent tariffs due to mounting pressure caused by aluminium supply disruptions. Among these is legacy automaker Ford, which, under the leadership of CEO Jim Farley, has been vocal in its opposition to import tariffs. Ford has been particularly beleaguered by the impact of tariffs following a series of production setbacks at Novelis’ aluminium rolling facility in Oswego, New York.
The plant, a key supplier for several carmakers, including GM, was forced offline following two separate fires last year, creating a ripple effect across the industry. Although efforts are underway to bring operations back online, a full restart is not expected until later in the second quarter.
As a result, Ford has been forced to import large quantities of aluminium from offshore suppliers in South Korea and Europe, facing hefty tariffs in return, currently set at 50% under the existing tariff framework.
Ford approached the Trump administration seeking temporary relief from tariffs on imported aluminium, arguing that suspending these duties would help offset the supply gap until domestic production stabilises. Officials at the White House have denied Ford any temporary relief.
This denial highlights broader tensions between automakers and the administration over trade measures that have raised raw material costs. With domestic supply constrained, companies have increasingly turned to overseas sources, including facilities in Europe and South Korea, incurring significant fees.
Ford has been particularly exposed to the shortage due to its reliance on aluminium for its F-150 pickup trucks, one of its most profitable product lines. The Oswego plant is a critical part of that supply chain. Other major manufacturers, such as Stellantis and General Motors, are also affected, though to a lesser degree.
The financial impact is already evident. Earlier this year, Ford reported a sharp decline in quarterly earnings, with profits dropping by roughly half to $1 billion. The company attributed much of the downturn to rising costs tied to supply chain disruptions following the plant shutdown.
As the Trump administration continues to take a hard line on policy, OEMs like Ford will have to find ways to absorb high production costs if they are to remain profitable.
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